China and Singapore Jingwei client on March 26th. On the 26th, the central bank announced that the current total liquidity of the banking system is at a reasonable and sufficient level, and no reverse repurchase operation will be carried out on March 26, 2020. Wind data show that today's non-reverse repurchase expires. So far, the central bank has suspended reverse repurchase operations for 28 consecutive working days.

Source: Central Bank's official website

According to the official website of the central bank, the last time the central bank launched a reverse repo operation was on February 17. On the same day, the central bank announced that in order to hedge the influence of the central bank's reverse repurchase expiration and other factors, to maintain a reasonable and sufficient liquidity of the banking system, on February 17, 2020, the People's Bank of China launched a 200 billion yuan medium-term loan facility (MLF) operation and 100 billion yuan 7-day reverse repo operation.

Regarding the reasons for the central bank's continuous suspension of reverse repurchase, Li Zhan, chief economist of Zhongshan Securities, analyzed that since February, the central bank has introduced liquidity to the market by means of targeted RRR cuts and medium-term borrowing facilities (MLF) . Currently, the money market interest rates are at historically low levels The urgency of further easing monetary policy has been reduced.

Source: Official Website of China Foreign Exchange Trading Center

In terms of bank funds, information from the China Foreign Exchange Trading Center shows that as of the 25th, Shibor rose by 3.3 basis points to 0.847% overnight, and Shibor rose by 5.2 basis points to 1.745% in 7 days. 14-day and 1-month varieties declined to varying degrees.

In addition, on the 25th, in order to improve the market liquidity of banks' perpetual bonds, support banks to issue perpetual bonds to supplement capital, and enhance the ability of financial services to the real economy, the central bank launched a central bank bill swap (CBS) operation with an operating volume of 5 billion yuan. The term is 3 months and the rate is 0.10%.

Chuancai Securities pointed out that from the perspective of long-term and short-term liquidity, long-term interest rates can to some extent reflect the real economy's expectations of follow-up operating activities, and China's current monetary policy tends to be shorter and longer. In mid-March, short-term inter-bank liquidity tensions occurred, and Shibor rose across the board. Compared to direct short-term funding through reverse repurchase, the central bank lowered the inclusive financial quota on March 16th, and on the same day added MLF to inter-bank liquidity. supplement. This time, the central bank replenished bank funds with CBS in March to ease the pressure on banks 'medium-term liabilities, which helped to strengthen banks' willingness to borrow and promote the financing rate of real enterprises, especially the decline in medium and long-term financing rates.

CITIC Solid Revenue believes that the interest rate cut in March is expected to fail, and monetary policy is not in a hurry to avoid the flooding during the gradual implementation of resumption of production and production; it is expected that monetary policy will increase in fiscal policy next month and the fundamentals will gradually pick up China introduced further easing measures, and a dual-reduction combination of OMO interest rate cuts and overall RRR cuts may occur, and subsequent benchmark deposit interest rates may also be adjusted.

According to the official website of the central bank, on the evening of March 23, the chairman of the Group of Twenty (G20), Saudi Arabia, hosted a video conference between the finance ministers of the G20 and the governor of the central bank to discuss the impact and response of the new crown pneumonia epidemic on the global economy and respond to the G20 leaders. Preparing for the new crown pneumonia epidemic special summit.

At the meeting, Yi Gang, the governor of the central bank, stated that under the current situation, the G20 countries need to strengthen coordination and adopt a combination of macroeconomic policies simultaneously to effectively respond to the impact of the epidemic. China supports the G20 as a major international macroeconomic policy coordination platform to continue to strengthen coordination, supports the International Monetary Fund to play the central role of the global financial safety net, and maintains global economic and financial market stability. (Zhongxin Jingwei APP)